Cardano and MATIC’s Latest Buying Opportunity – Will Bitcoin Have a Voice?
Journalist
- Bitcoin halving could dampen optimistic expectations
- Cardano and MATIC are likely to rise, but investors must be prepared for short-term losses
Bitcoin [BTC] The halving will take place in ten days, which means the block reward will be reduced to 3,125 BTC. This could be priced in the market because everyone knows it’s coming. But there are many other factors to consider.
Since the first week of March, Bitcoin has been consolidating at or above $60,000. The cryptocurrency quickly disappeared from the charts after hitting a new all-time high of $73,700. What impact will this halving have and what effect will it have on altcoins like Cardano? [ADA] MATIC]What are the implications?
Bitcoin halving impact on altcoins
BTC was halved on July 9, 2016 and May 11, 2020. Bitcoin’s range in May 2020 was between $8,500 and $10,000. The previous month, the cryptocurrency had risen from $6,000 to $9,400.
Bitcoin price rose from $440 in May to $785 in June 2016. Around the time of the halving in July, price movements were muted. Prices remained between $630 and $680 for almost an entire month.
The price action over the past two months has been closer to 2016 than 2020. Similarities include a rising price in the months leading up to the halving and a range-forming pattern. A deep retracement of $500 occurred in August 2016. If the similarity continues, Bitcoin could fall back to $50,000 by May.
Cardano and MATIC investor expectations
AskFX examined on-chain metrics to gauge investor confidence over the past few weeks. Cardano’s 30-day MVRV has been strongly negative since March 17. It has yet to reach positive territory, a sign that holders are making losses.
The average coin age also started to rise. This is a good buy signal as it indicates accumulation despite recent selling pressure. Sentiment was lukewarm.
MATIC seemed to be in the same position. Recent weighted sentiments were negative, reflecting pessimistic engagement on social media. However, the average coin age seemed to start an uptrend, although not quite as strong as ADA.
Read MATIC’s 2024-25 price prediction
Like Cardano, the 30-day MVRV was also negative. Another strong buy signal. However, investors should be aware of the possibility of a massive Bitcoin sell-off in the coming weeks. If a sharp decline does occur, they should be ready to buy Bitcoin.
